AI Terminal
Recordati Industria Chimica e Farmaceutica
Earnings Release • Jul 30, 2025
4056_ir_2025-07-30_c51e4524-9ed0-4b8f-84f9-398d50a8ffe2.pdf
Earnings Release
Open in ViewerOpens in native device viewer
FIRST HALF 2025 RESULTS
July 30, 2025
Rob Koremans Chief Executive Officer
Luigi La Corte Chief Financial Officer
H1 2025: CONTINUED STRONG MOMENTUM ACROSS THE BUSINESS
- H1 2025 results show continued strong momentum of the Group, with Net Revenue at € 1,323.8 million, +11.7% vs PY or 7.8% like-for-like1 at CER; adverse FX impact of € 23.2 million (-2.0%), mostly from Turkish lira partially compensated by price inflation, with increasing headwind from USD in Q2 2025:
- o SPC at € 774.4 million, +2.6% vs PY or +5.1% at CER (+2.6% ex Türkiye) vs a robust H1 2024 driven by mid-to-high single digit growth of Cardiovascular and Gastrointestinal franchises and slight growth of Urology offsetting softer Cough & Cold which partially recovered in Q2 2025
- o RRD at € 515.7 million, +29.2% vs PY or +12.8% like-for-like1 at CER, driven by continued volume growth in all three franchises, Endocrinology +16.6%, Hema-Oncology +71.2% (Enjaymo® contribution of € 69.4 million), Metabolic +5.9% vs PY
- EBITDA2 of € 469.3 million, +9.6% vs PY or 37.5% margin reflecting strong revenue performance partially offset by higher investments to support the launch of the expanded approval of Isturisa® for Cushing's syndrome in the U.S., integration of Enjaymo® and for continued geographic expansion
- Adjusted Net Income3 of € 327.8 million, +8.9% vs PY or 24.8% margin, with higher operating income partially offset by higher tax rate
- Free Cash Flow4 of € 256.8 million (substantially aligned with PY), driven by higher EBITDA which was partially offset by working capital absorption and income tax paid; leverage at just below 2.3x EBITDA pro-forma5 , following May dividend
- Licensing and supply agreement with Amarin to commercialize Vazkepa® (icosapent ethyl) across Europe, strengthening the SPC business and Cardiovascular therapeutic area
- Progress on R&D pipeline: Clinical trial for dinutuximab beta (Qarziba®) for Ewing sarcoma initiated in Q2 2025 evaluating safety, dose and early signs of effects; other programs (pasireotide for post-bariatric hypoglycemia and Qarziba® U.S.) on track
- FY 2025 targets confirmed despite increased FX headwinds (approx. -3%)
2) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of acquisitions to the gross margin of acquired inventory as foreseen by IFRS 3 3) Net income excluding amortization and write-downs of intangible assets (except software) and goodwill, non-recurring items, non-cash charges arising from the allocation of the purchase price of acquisitions to the gross margin of acquired inventory as foreseen by IFRS 3, monetary net gains/losses from hyperinflation (IAS 29), net of tax effects. 4) Total cash flow excluding financing items, milestones, dividends, purchases of treasury shares net of proceeds from exercise of stock options
1) Pro-forma growth calculated excluding revenue of Enjaymo® for H1 2025
LICENSING AGREEMENT TO COMMERCIALIZE VAZKEPA® IN EUROPE FURTHER STRENGTHENS CARDIOVASCULAR FRANCHISE
Vazkepa® is indicated to reduce the risk of cardiovascular events in statin-treated adult patients with high cardiovascular risk, which brings patent protection in Europe up to 2039
Approved in 2021 in the EU and UK and in 2022 in Switzerland based on REDUCE-IT, a Phase 3 Cardiovascular Outcomes Trial in over 8,000 patients with statistically significant and clinically meaningful results
Complements existing Specialty & Primary Care business and Cardiovascular portfolio in core markets while enhancing the UK
Net sales of € 12 million in 2024, expected to be EBITDA positive from 2026 and to achieve over € 40 million in revenues in 2027
FY 2025 impact expected to be minimal on the top line (<€ 10 million) and slightly negative at EBITDA level due to integration and launch costs
Upfront cash payment of US\$ 25 million. Amarin eligible to receive commercial milestones up to a total of US\$ 150 million if annual revenues for Vazkepa® exceed certain sales thresholds starting from € 100 million
SPECIALTY & PRIMARY CARE: RESILIENT MID-SINGLE DIGIT GROWTH AT CER
Key highlights
- Resilient growth of +2.6% or +5.1% at CER (+2.6% excluding Türkiye) vs a robust H1 2024, continued overperformance of promoted portfolio vs relevant markets (105% Evolution Index2 )
- Urology: Stable contribution of Eligard® with strong in-market growth2 , double-digit growth of Urorec® (driven by Russia and Italy) and regional products (Tergynan® in Russia and Mictonorm® in Türkiye), partially offset by a decline of Avodart®/Combodart® mainly due to Gx pressure in Spain, with stabilization in Q2 2025
- Cardiovascular: Continued growth of lercanidipine and metoprolol, particularly in CEE and Germany, thanks also to competitors' out of stock
- Gastrointestinal: Driven by double-digit growth of Procto Glyvenol® and Salaza® in Poland (benefiting from withdrawal of key competitor)
- Cough & Cold: Good recovery in Q2 2025 (+7.8%), driven by Russia, partially offsetting weaker flu season in Q1 2025
1) Excluding Chemicals € 33.7 million in H1 2025 and € 31.5 million in H1 2024
2) IQVIA May YTD Evolution Index on promoted products in SPC territories
3) Trademarks are owned by or licensed to the GSK group of companies. Note: details on corporate products in Appendix
RARE DISEASES: STRONG DOUBLE-DIGIT GROWTH DRIVEN BY ALL FRANCHISES
Key highlights
- Continued strong double-digit growth, +29.2% vs PY or 12.8% like-for-like2 at CER
- Endocrinology:
- Isturisa®: Double-digit growth driven mostly by continued new patient uptake across all key geographies. >1,000 net active patients in U.S., approvals in Canada and Russia, reimbursement application filed in China
- Signifor®: Double-digit growth mainly driven by higher volumes in U.S., EU and South America
- Hema-Oncology: Double-digit growth (+12.0% like-for-like2 ) driven by increased volumes for Sylvant® in U.S. and EMEA and Qarziba® across geographies. Sales of Enjaymo® were € 69.4 million (+26.4% vs H1 2024 pro-forma3 ), in line with plan
- Metabolic: Continued growth driven by good performance of Panhematin® in U.S. and Carbaglu® in international markets (stabilization in U.S.)
1) Of which Isturisa® of € 113.2 million and Signifor® and Signifor® LAR of € 65.1 million
2) Proforma growth calculated excluding contribution of Enjaymo® for 2025
3) Comparing 1H 2025 revenue (which considers also the margin retained by Sanofi's on in market sales for those countries where it was still holding the MA) with 1H 2024 revenue totally realized by Sanofi
ALL REGIONS CONTRIBUTING TO GROWTH
| (million euro) | H1 2025 | H1 2024 | Change % |
|---|---|---|---|
| U.S.A. | 241.3 | 184.1 | 31.0 |
| Italy | 181.9 | 176.3 | 3.2 |
| Spain | 110.4 | 109.4 | 0.9 |
| France | 93.2 | 90.3 | 3.2 |
| Germany | 88.7 | 81.4 | 9.0 |
| Russia, other CIS countries and Ukraine | 81.1 | 71.8 | 13.0 |
| Türkiye | 70.5 | 70.0 | 0.6 |
| Portugal | 35.7 | 32.6 | 9.5 |
| Other C.E.E. countries | 96.0 | 82.0 | 17.0 |
| Other W. European countries | 80.2 | 81.4 | (1.5) |
| North Africa | 27.5 | 24.3 | 13.4 |
| Other international sales | 183.6 | 150.5 | 22.0 |
| TOTAL PHARMACEUTICALS | 1,290.2 | 1,154.2 | 11.8 |
| CHEMICALS | 33.7 | 31.5 | 6.8 |
| in local currency, million | H1 2025 | H1 2024 | Change % |
|---|---|---|---|
| U.S.A. (USD) | 263.6 | 199.1 | 32.4 |
| Türkiye (TRY) | 3,000.1 | 2,278.4 | 31.7 |
| Russia (RUB)1 | 4,936.3 | 4,212.7 | 17.2 |
CONTINUED DOUBLE-DIGIT GROWTH OF REVENUE AND EBITDA
| (million Euro) | H1 2025 | H1 2024 | Change % |
|---|---|---|---|
| Revenue | 1,323.8 | 1,185.7 | 11.7 |
| Gross Profit | 882.6 | 801.8 | 10.1 |
| as % of revenue | 66.7% | 67.6% | |
| Adjusted Gross Profit1 | 929.5 | 828.8 | 12.2 |
| as % of revenue | 70.2% | 69.9% | |
| SG&A Expenses | (368.4) | (321.4) | 14.6 |
| as % of revenue | (27.8%) | (27.1%) | |
| R&D Expenses | (167.1) | (139.1) | 20.1 |
| as % of revenue | (12.6%) | (11.7%) | |
| Other Income (Expense), net | (16.1) | (2.7) | n.s. |
| as % of revenue | (1.2%) | (0.2%) | |
| Operating Income | 331.0 | 338.5 | (2.2) |
| as % of revenue | 25.0% | 28.6% | |
| Adjusted Operating Income2 | 394.7 | 367.9 | 7.3 |
| as % of revenue | 29.8% | 31.0% | |
| Financial income/(Expenses), net | (46.7) | (46.8) | (0.2) |
| as % of revenue | (3.5%) | (3.9%) | |
| Net Income | 216.1 | 225.4 | (4.1) |
| as % of revenue | 16.3% | 19.0% | |
| Adjusted Net Income3 | 327.8 | 301.0 | 8.9 |
| as % of revenue | 24.8% | 25.4% | |
| EBITDA4 | 496.3 | 452.9 | 9.6 |
| as % of revenue | 37.5% | 38.2% |
1) Gross profit adjusted from impact of non-cash charges arising from the allocation of the purchase price of acquisitions to the gross margin of acquired inventory as foreseen by IFRS 3
2) Net income before income taxes, financial income and expenses, non-recurring items, and non-cash charges arising from the allocation of acquisitions to the gross margin of acquired inventory as foreseen by IFRS 3
3) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of acquisitions to the gross margin of acquired inventory as foreseen by IFRS 3
8
STRONG FREE CASH FLOW, IN LINE WITH PREVIOUS YEAR HIGHER EBITDA OFFSET BY HIGHER TAXES AND INCREASED INVENTORY (MAINLY U.S.)
| (million Euro) | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| EBITDA1 | 496.3 | 452.9 | 43.4 |
| Movements in working capital | (102.9) | (73.6) | (29.3) |
| Changes in other assets & liabilities | (2.7) | (20.9) | 18.2 |
| Interest received/(paid) | (45.5) | (39.1) | (6.4) |
| Income tax Paid | (75.9) | (54.7) | (21.2) |
| Other | 2.9 | 2.6 | 0.3 |
| Cash Flow from Operating Activities | 272.2 | 267.2 | 5.0 |
| Capex (net of disposals) | (15.4) | (10.6) | (4.8) |
| Free cash flow2 | 256.8 | 256.6 | 0.2 |
| Increase in intangible assets (net of disposals) | (27.6) | (9.0) | (18.6) |
| Dividends paid | (137.6) | (128.8) | (8.8) |
| Purchase of treasury shares (net of proceeds) | (48.4) | (7.7) | (40.7) |
| Other financing cash flows3 | (24.1) | (132.3) | 108.2 |
| Change in cash and cash equivalents | 19.1 | (21.2) | 40.3 |
9
1) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of acquisitions to the gross margin of acquired inventory as foreseen by IFRS 3 2) Total cash flow excluding financing items, milestones, dividends, purchases of treasury shares net of proceeds from exercise of stock options
3) Opening of financial debts net of repayments and currency translation effect on cash and cash equivalents.
LEVERAGE AT JUST BELOW 2.3x EBITDA PRO-FORMA1POST MAY DIVIDEND PAYMENT
| (million Euro) | 30-Jun-25 | 31-Dec-24 | Change |
|---|---|---|---|
| Cash and cash equivalents | 341.6 | 322.4 | 19.2 |
| Short-term debts to banks and other lenders | (80.9) | (22.8) | (58.1) |
| due within one year2 Loans and leases - |
(302.8) | (284.9) | (17.9) |
| due after one year2 Loans and leases - |
(2,085.0) | (2,169.0) | 84.0 |
| NET FINANCIAL POSITION3 | (2,127.1) | (2,154.3) | 27.2 |
1) Pro-forma calculated by adding Enjaymo's® estimated contribution from April to November 2024 (when it still was propriety of Sanofi) to EBITDA.
2) Includes the fair value measurement of the relative currency risk hedging instruments (cash flow hedge)
3) Cash and cash equivalents, less bank debts and loans, which include the measurement at fair value of hedging derivatives
FY 2025 TARGETS CONFIRMED DESPITE STRONGER FX HEADWIND
| € million | FY 2025 Targets* |
Comments |
|---|---|---|
| Revenue 2,600 – 2,670 yoy growth +12.5% |
Strong underlying business performance Further step up of Isturisa® and Enjaymo® in H2, in line with plan Contribution from Vazkepa® < € 10 million |
|
| FX headwind now expected approx. -3% for FY (vs. -1% original est.) | ||
| EBITDA1 970 – 1,000 margin on sales +/- 37.5% |
Operating leverage Positive mix Efficiency initiatives |
|
| FX impact (USD) Continued investment behind Cushing's syndome opportunity in U.S. Vazkepa® transition and integration costs |
||
| Adjusted Net 640 – Income2 +/- 25.0% margin on sales |
670 | Operating results in line with plan Part retain FX gains upside (financial income) |
| Tax rate ~24.0% |
*Growth at mid-point of guidance range
1) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of EUSA Pharma and Enjaymo® to the gross margin of acquired inventory according to IFRS 3 2) Net income excluding amortization and write-downs of intangible assets (except software) and goodwill, non-recurring items, non-cash charges arising from the allocation of the purchase price of EUSA Pharma and Enjaymo® to the gross margin of acquired inventory (IFRS 3) and monetary net gains/losses from hyperinflation (IAS 29), net of tax effects 11
QUESTIONS & ANSWERS
COMPOSITION OF REVENUE DIVERSIFIED PORTFOLIO AND FOOTPRINT
Therapeutic Areas Geographic Total Revenue H1 2025 Pharmaceutical Revenue H1 2025* France Germany Other Western Europe Other CEE Italy USA Other International Sales Spain Türkiye Portugal North Africa Russia, Ukraine and other CSI 18.7% 14.1% 14.2% 8.6% 7.2% 7.4% 6.2% 6.9% 6.3% 5.5%2.8% 2.1%
*Excluding sales of pharmaceutical chemicals, which were €33.7 million
MAIN PRODUCT SALES
| (million Euro) | H1 2025 | H1 2024 | Change % |
|---|---|---|---|
| Specialty & Primary Care | 774.4 | 754.9 | 2.6 |
| Zanidip® (lercanidipine) and Zanipress® (lercanidipine+enalapril)1 |
106.6 | 101.4 | 5.1 |
| Eligard® (leuprorelin acetate) |
63.1 | 64.0 | (1.4) |
| Seloken®/Seloken® ZOK/Logimax® (metoprolol/metoprolol+felodipine) |
57.4 | 53.1 | 8.0 |
| Avodart® (dutasteride) and Combodart®/Duodart® (dutasteride/tamsulosin)2 |
52.7 | 57.3 | (8.1) |
| Urorec® (silodosin) |
44.1 | 40.0 | 10.3 |
| Livazo® (pitavastatin) | 28.2 | 27.1 | 3.9 |
| Rare Diseases | 515.6 | 399.3 | 29.1 |
| Isturisa® (osilodrostat) | 113.2 | 96.3 | 17.5 |
| Signifor® (pasireotide) | 65.1 | 56.6 | 15.0 |
| Qarziba® (dinutuximab beta) | 78.5 | 70.4 | 11.6 |
| Sylvant® (siltuximab) | 45.2 | 39.6 | 14.1 |
| Enjaymo® (sutimlimab) | 69.4 | - | n.s. |
2) Trademarks are owned by or licensed to the GSK group of companies
3) Includes the OTC corporate products for an amount of € 74.2 million in H1 2025 and € 74.3 million in H1 2024; Total OTC € 184.7 million in H1 2025 and € 178.2 million in H1 2024
H1 2025 RESULTS BY OPERATING SEGMENTS
Total Revenue H1 2025 EBITDA1 H1 2025
Margin on Revenue: Rare Diseases: EBITDA141.7% Specialty and Primary Care: EBITDA1 34.8%
H1 2025 RESULTS – ADJUSTING ITEMS
Reconciliation of Net income to EBITDA1
| (million Euro) | H1 2025 | H1 2024 | Change % |
|---|---|---|---|
| Net Income | 216.1 | 225.4 | (4.1) |
| Income Taxes | 68.2 | 66.4 | |
| Financial (income)/expenses, net | 46.7 | 46.8 | |
| o/w net FX (gains)/losses2 | (7.5) | 7.5 | |
| o/w net monetary (gains)/losses from application of IAS 29 |
2.5 | 1.0 | |
| Non-recurring expenses | 16.8 | 2.4 | |
| Non-cash charges from PPA inventory uplift | 46.9 | 27.0 | |
| Adjusted Operating Income3 | 394.7 | 367.9 | 7.3 |
| Depreciation, amortization and write downs | 101.6 | 85.0 | |
| EBITDA1 | 496.3 | 452.9 | 9.6 |
Reconciliation of Reported Net income to Adjusted Net income4
| (million Euro) | H1 2025 | H1 2024 | Change % |
|---|---|---|---|
| Net income | 216.1 | 225.4 | (4.1) |
| Net monetary (gains)/losses (IAS 29) | 2.5 | 1.0 | |
| Non-recurring expenses | 16.8 | 2.4 | |
| Non-cash charges from PPA inventory uplift | 46.9 | 27.0 | |
| Amortization and write-downs of intangible assets (exc. software) |
81.8 | 68.2 | |
| Tax effects | (36.3) | (22.9) | |
| Adjusted Net income4 | 327.8 | 301.0 | 8.9 |
Summary of key items
- FX gains of € 7.5 million in H1 2025 vs € 7.5 million losses in H1 2024
- Net monetary losses of € 2.5 million from application of IAS 29 in H1 2025, vs € 1.0 million losses in H1 2024
- Non-recurring costs of € 16.8 million vs € 2.4 million in H1 2024 for restructuring costs mainly related to the optimization of the SPC commercial organization in Italy and Spain
- Non-cash charges at the level of gross margin arising from the unwind of the fair value step up of acquired Rare Diseases inventory: € 46.9 million in H1 2025 (arising mostly from Enjaymo®) vs. € 27.0 million in H1 2024
- D&A and write downs of assets: increase of € 16.6 million, of which € 17.5 million from Enjaymo®
1) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of acquisitions to the gross margin of acquired inventory as foreseen by IFRS 3 2) FX losses and FX driven consolidation adjustments
3) Net income before income taxes, financial income and expenses, non-recurring items, and non-cash charges arising from the allocation of the purchase price of acquisitions to the gross margin of acquired inventory as foreseen by IFRS 3
4) Net income excluding amortization and write-downs of intangible assets (except software) and goodwill, non-recurring items, non-cash charges arising from the allocation of the purchase price of acquisitions to the gross margin of acquired inventory as foreseen by IFRS 3 , monetary net gains/losses from hyperinflation (IAS 29), net of tax effects.
LIFECYCLE PROGRAMS PROGRESSING IN LINE WITH PLAN
| PROGRAM | UPCOMING MILESTONE | |
|---|---|---|
| Osilodrostat | Cushing's syndrome U.S. • |
Expanded label granted by FDA in April 2025 |
| Pasireotide | Post-Bariatric Hypoglycaemia (PBH)1 • |
Phase 2 enrollment completion in the coming weeks |
| Dinutuximab beta |
High Risk relapsed/refractory • Neuroblastoma U.S. |
Meeting with the FDA to discuss further analysis of clinical data in September 2025 |
| Ewing sarcoma2 • |
Clinical trial evaluating safety, dose and early signs of effect initiated in Q2 2025; top-line results expected mid-2026 |
|
| Sutimlimab | • Immune thrombocytopenic purpura (ITP) |
Go/no go decision expected Q1 2026, following FDA Phase 3 feedback |
COMPANY DECLARATIONS, DISCLAIMERS AND PROFILE
Statements contained in this presentation, other than historical facts, are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on current best estimates, and on assumptions believed to be reasonable by Management. This information, these estimates and assumptions may prove to be incomplete or erroneous, and involve numerous risks and uncertainties, beyond the Company's control.
These risks and uncertainties include among other things, the uncertainties inherent in pharmaceutical marketing and development, impact of decisions by regulatory authorities, such as the FDA or the EMA, regarding whether and when to approve any drug or biological application that may be filed as well as their decisions regarding labelling and other matters that could affect the availability or commercial potential of our products, the future approval and commercial success of therapeutic alternatives, Recordati's ability to benefit from external growth opportunities, to complete capital markets or other transactions and/or obtain regulatory clearances, risks associated with intellectual property and any related pending or future litigation and the ultimate outcome of such litigation, trends in exchange rates and prevailing interest rates, volatile economic and capital market conditions, cost containment initiatives by payors of medicines and subsequent changes thereto, and the impact that pandemics, political disruption or armed conflicts or other global crises may have on our business.
Hence, actual results may differ materially from those expressed or implied by such forward-looking statements. All mentions and descriptions of Recordati products are intended solely as information on the general nature of the company's activities and are not intended to indicate the advisability of administering any product in any particular instance.
Recordati (Reuters RECI.MI, Bloomberg REC IM) is an international pharmaceutical group listed on the Italian Stock Exchange (ISIN IT 0003828271) uniquely structured to bring treatment across specialty and primary care and rare diseases. We believe that health, and the opportunity to live life to the fullest, is a right, not a privilege. We want to support people in unlocking the full potential of their lives. We have fully integrated operations across research & development, chemical and finished product manufacturing through to commercialization and licensing. Established in 1926, Recordati operates in approximately 150 countries across EMEA, Americas and APAC regions. At the end of 2023, Recordati employed over 4,450 people and consolidated revenue of € 2,082.3 million. For more information, please visit www.recordati.com
DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY'S FINANCIAL REPORTS
The manager responsible for preparing the company's financial reports Niccolo Giovannini declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records.
Offices:
Recordati S.p.A. Via M. Civitali 1 20148 Milano, Italy
Investor Relations: Eugenia Litz +44 7824 394 750 [email protected]
Investor Relations: Gianluca Saletta +39 348 9794876 [email protected]
Website: www.recordati.com
